Rensselaer Semi-Weekly Republican, Volume 41, Number 52, Rensselaer, Jasper County, 16 March 1909 — DIFFERENT FRANCHISE IS NOW PROPOSED [ARTICLE]

DIFFERENT FRANCHISE IS NOW PROPOSED

Possible Amicable Adjustmentof Telephone Situation in Dividend Restricted Franchise.

CITY MADE PARTNER Any Earnings Over Eight Per Cent Would Go Into City Treasury, is a Suggestion Made By Attorney Williams.

Tfye adjourned session of the city council held Thursday evening probably. sealed the doom of the franchise asked of this city by the Jasper County Telephone Co., and will make way for a franchise to be drawn up by City Attorney George A. Williams, which if the council decides to pass it, will restrict the earnings of the telephone company to 8 per cent on the capitalization in any one year and any earnings in excess of that amount will be turned into the treasury of the city of Rensselaer.

The proposition came from Mr. Williams after a discussion of some length by the council or rather in the presence of the council by representatives of the telephone company on the one side and representatives of the people on the other.

While the result of the discussion was wholesome in the main, there were some rather personal remarks that tended to spoil an otherwise valuable experience meeting. The meetiing was not as representative as it should have been, for a matter of I such magnitude as a twenty-year franchise should have the attention of business men and citizens generally to the temporary neglect of other matters.

President Delos Thompson of the telephone company, B. F. Fendig, a stockholder, Superintendent Jack Montgomery and a number of friends of the company were present, and a number of citizens who either opposed the franchise or favored the deferIng of action pending investigation of the books of the company and a comparison with existing rates and conditions in other cities were also on band and took an active part in the Informal ’ side-line discussion. The probable result was that the franchise that had been proposed by the telephone company will be discarded, for it is quite sure that the majority of citizens are against its granting and it Is also probable that the members of the council, who seem anxious to do the right thing, can see that the granting of the franchise is opposed by most citizens. C. G. Spitler, of the council, was the, only outspoken member who favored the franchise, and Ell Gerber Is the only member who gave positive evidence of being against It. Geo. F. Meyers had- evidently made more Investigation than any other member, and said that he had made it bls bu'sness to talk with business men on the proposition and he was sure that three-fourths of them were opposed to granting the franchise. He gave the reasons he offered, and spoke with fairness to the company and for the people. J. F. Irwin talked on the project and seemed to want to do the right thing to all concerned. H. L. Brown did not make any remarks, but It is certain that his action would be determined by the merits of the case and that the welfare of his constituents would not be overlooked In any important matter.

In the early part of the meeting Mr, Spitler moved that a committee consisting of G. A. Williams, city attorney, W. H. Beam and J. N. Leatherman, be appointed to examine the books of the telpheone company with a view .to determining whether the statement from the company was true relating to the cash investment and the dividends that had been declared. To this Mr. Thompson objected on the grounds that the company did not care to have the affairs of the company made public. He was willing that the city attorney and the council members constitute the committee the city attorney and the council to look over the books. One citizen sugg<ited that the matter of the

company's finances was made a public concern by x the statement eminating from the company that certain conditions existed. This was made to create public interest and therefore 'the public' was entitled to know whether the circulated reports were true. The committee nominated seemed to meet the approval of citizens, but the company was opposed to it cn tl.e grounds that at laest one of the proposed members was prejudiced and had signed a remonstrance against the granting? of the franchise. There was no particular Objection to the members of the council constituting the committee, but the impression; seemed to be that the examinaton should go deeper than just a cursory examination of the receipts and expenditures and that tha committee making the examlntion shruld have the right to delve deeply into their work. On this acebunt men who have had experience In book keeping should do the work. Nothing came of the discussion and no steps were taken toward the examination of the books. If the granting of the new franchise hinges on whether or not the telephone company is paying, this being the reason advanced by the company, then the people and the council are entitled to know. If, argued one citizen, they are not entitled to know then they are justified in some, skepticism as to the reports of the company’s spokesmen.

John Bruner, who has independent lines with free connection with) the local switchboard, as a result of a comx>romise effected some years ago when he was running an Independent local exchange, feared the effect that one clause of the proposed franchise might have on his business. The muse provides that wherever farmers’ mutual lines are built they shall have the right to connect with the local switch board of the franchise company at the rate of 35 cents a month per phone. Mr. Bruner thought the construction of these Jies highly probable, and while the investment and. maintenance of these lines would be considerable that faimres would probably be attracted by the 35 cent central connection and thus put him out of business.

City Attorney Williams finally proposed that a new franchise be drawn up, wnlrh would provide for a new system oi phones and equipment, and also for an advance of rate. This franchise is to have been drawn after an equ. table appraisement of the present equipment of the company has been made and the value of this equipment and the cost of the Imuroved system is to constitute the capital stock of he company. The franchise is to provide tor depredation of the equipment, allowing the company. to make sufficient to keep up Its system, and also to allow them to make not to exceed 8 per cent on the capitalism.''n each year. Any revenue over that would go to the general treasury of the city pf Rensselaer. This is a plan adopted by many large cit'es In granting franchises. Chicago receive a great amount of revenue from its portion of the street car earnings, and now a co-operation franchise Is proposed with dock companies opt rating on the lake front. Mr. Williams proposes to write for copies of these ordinances - and ' draw up a contract with the company that will protect the Interest of the city and public. His suggestion seemed to meet general approval and while Its adoption is by no means a certainty it would seem to offei* a very fair solution of the question, and those who attended the meeting of the council seemed to think it the proper thlrg to do. With few exceptions sutMTibers seem to want to provide a civics for the company to realize a fair Interest in their Investment. and there seemed a demand from all sources for better service. NonJ hraet to want to take any chances of framing up a rich franchise for the telephone company at the expense of the people and the telephone - patrons. If the company and the council can agree with the telephone company as to the value